JC Master Legal News Issue 1130

Key Takeaways for This Issue

The People’s Bank of China has decided to establish the “Securities, Funds, and Insurance Companies Swap Facility.”
On October 10, the People’s Bank of China issued an announcement stating that it has decided to establish the “Securities, Funds and Insurance Companies Swap Facility (SFISF).”
The National Administration of Financial Regulation has clarified differentiated regulatory provisions for certain non-bank financial institutions, covering areas such as corporate governance.
The website of the National Administration of Financial Regulation has published the “Notice on the Differentiated Application of Corporate Governance and Other Relevant Regulatory Provisions to Certain Non-Bank Institutions.”
The State Administration for Market Regulation plans to revise the Measures for the Administration of Green Product Certification and Labeling.
On October 9, the State Administration for Market Regulation published on its official website an announcement soliciting public comments on the “Administrative Measures for Green Product Certification and Labeling (Draft for Comments),” with a deadline for feedback set for October 23.
The draft of the Law on Promoting the Private Economy has been released for public comment.
On October 10, the Ministry of Justice website published the “Notice on Soliciting Public Opinions on the Draft Law of the People’s Republic of China on Promoting the Private Economy,” with the deadline for submitting feedback set for November 8.
Finance & Capital Markets
Adopting a multi-pronged approach to invigorate the M&A and restructuring market: The Shanghai Stock Exchange has once again convened a symposium with securities offices, striving to bridge the “last mile” in policy implementation.
To implement the decisions and arrangements of the CPC Central Committee and the State Council on the capital market, to carry out the spirit of the Politburo meeting and the new “Nine Measures for the Capital Market,” and to ensure the effective implementation of the CSRC’s “Six Measures on M&A” and the “Eight Measures for the STAR Market,” the Shanghai Stock Exchange convened another symposium with securities offices on October 10. At the event, the latest policy guidelines on mergers and acquisitions and restructuring were explained, and views and suggestions were solicited to further invigorate the M&A and restructuring market and bridge the “last mile” in policy execution. Eight leading securities offices—CITIC Securities, CICC, CITIC Securities Investment, Huatai United, Guotai Junan, Guoxin Securities, Orient Securities, and GF Securities—participated in the meeting.

The participating securities offices unanimously agreed that the “Six Measures on M&A” and the “Eight Measures for the STAR Market” are officely aligned with market‑oriented principles, directly addressing the key challenges and bottlenecks in M&A and restructuring that have drawn market attention. These measures introduce a series of innovative arrangements—supporting listed companies’ transformation and upgrading toward new‑type productive forces, encouraging industrial consolidation, further enhancing regulatory flexibility, and improving the efficiency of restructuring transactions. The breadth and strength of these initiatives are rare in recent years, effectively boosting confidence and vitality in the M&A and restructuring market. Since the release of these policies, M&A activity among Shanghai‑listed companies has continued to pick up, with a marked increase in deal volume; several landmark cases have emerged across both the Main Board and the STAR Market, receiving an enthusiastic market response. Participants emphasized that, as key intermediaries in M&A and restructuring, securities offices will earnestly enhance their service capabilities, effectively communicate and interpret regulatory guidance, and fully leverage their roles in transaction facilitation and professional advisory services to help more high‑quality deals that meet policy requirements move forward swiftly. At the same time, they put forward relevant suggestions on refining communication mechanisms for M&A and restructuring, further improving review efficiency, advancing the institutional framework for cross‑border M&A, optimizing the treatment of goodwill in restructuring transactions, and refining supporting systems related to taxation and state‑owned asset management.

A relevant official from the Shanghai Stock Exchange stated that mergers and acquisitions (M&A) and corporate restructuring are crucial mechanisms for achieving industrial consolidation and transformation, optimizing resource allocation, and fostering high‑quality development among listed companies. Under the guidance of regulatory authorities, the SSE will continue to deepen market‑oriented reforms in M&A and restructuring, refine its institutional frameworks, strengthen market communication and services, and promote greater openness, transparency, and predictability in regulation, thereby jointly cultivating a favorable market environment that supports high‑quality industrial M&A. The official also urged securities offices to earnestly fulfill their role as “gatekeepers,” enhance their professional capabilities and compliance standards, and, while meeting regulatory requirements, sharpen their judgment on value creation to ensure the quality of M&A and restructuring transactions. At present, it is essential to seize this rare opportunity, align efforts with regulators and the SSE, proactively explore new avenues, boldly innovate, and help listed companies make full and effective use of M&A and restructuring policy tools. By doing so, we can swiftly bring to fruition a number of landmark, high‑quality industrial M&A deals, translating innovative policies and measures into tangible results that drive the high‑quality development of listed companies.

Going forward, the Shanghai Stock Exchange will continue to work with relevant parties to effectively communicate and implement M&A and restructuring policies, guide all market participants to conduct such activities in a compliant manner, and further enhance the capital market’s role as the primary channel for corporate M&A and restructuring. This will help improve the quality and investment value of listed companies and bolster the intrinsic stability of the capital market.

“The 2024 International Training Program for Stock Exchanges” Was Successfully Held Online
From October 9 to 11, 2024, the “2024 International Training Program for Stock Exchanges,” hosted by the Shanghai International Centre for Communication and Cooperation between Exchanges (SICCCE) and supported by the Shanghai and Shenzhen Stock Exchanges, was successfully held online. This virtual training program represents a concrete initiative to strengthen business exchanges and knowledge sharing among exchanges along the Belt and Road, cultivate financial talent in regional capital markets, and bolster capacity-building in the capital markets sector. More than 260 representatives from 26 exchanges—hailing from Bangladesh, Bhutan, Canada, Germany, Greece, Hungary, Iran, Japan, Kazakhstan, Malaysia, Mongolia, Myanmar, Nigeria, Pakistan, Qatar, Russia, Singapore, Switzerland, Thailand, the United Arab Emirates, the United Kingdom, Vietnam, and China—participated in 13 thematic sessions, sharing updates on the latest market developments, exchanging best practices, and discussing shared challenges. The instructors were industry experts from seven domestic and international exchanges, as well as from relevant index providers, securities offices, and fund management companies. Officials from the International Cooperation Department of the China Securities Regulatory Commission, the Financial Office of the Shanghai Municipal Party Committee, the Shanghai Stock Exchange, and the SICCCE attended the opening ceremony and delivered remarks.

An official from the International Cooperation Department of the China Securities Regulatory Commission stated that capital markets worldwide serve the development of the real economy. How to establish and improve market systems and institutional mechanisms that are aligned with high-quality economic growth is a shared challenge for all regulators and key market participants. As a product of reform and opening-up, China’s capital market will undoubtedly continue to evolve through further opening-up. The CSRC will remain committed to supporting the Shanghai and Shenzhen stock exchanges in expanding pragmatic cooperation with overseas exchanges, thereby injecting new momentum into the stability and prosperity of global capital markets.

A responsible official from the Shanghai Municipal Party Committee’s Financial Office stated that, in recent years, the Shanghai Stock Exchange has actively pursued internationalization, achieving fruitful cooperation with exchanges along the Belt and Road and providing strong support for the development of Shanghai as an international financial center. The International Exchange Center jointly established by the Shanghai and Shenzhen stock exchanges has been based in Shanghai, proactively fostering communication and information sharing among exchanges along the Belt and Road; this training program is one concrete measure in that effort. Moving forward, the Shanghai Municipal Party Committee’s Financial Office will continue to provide robust support to the International Exchange Center, enabling it to leverage its strengths in organizing exchange‑related and capital‑market activities and contributing further to the building of Shanghai as an international financial center.

An official from the Shanghai Stock Exchange stated that global capital markets are confronting a range of development opportunities and challenges, while undergoing unprecedented transformations. These developments test exchanges’ capacity to adapt and their willingness to engage in large-scale cross-border cooperation. It is hoped that this international training program for stock exchanges will not only facilitate information sharing and capability enhancement among peers but also strengthen mutual trust and friendship among participating exchanges, laying the groundwork for future discussions and the launch of additional collaborative initiatives.

During the three-day training program, representatives from stock exchanges around the world engaged in in-depth discussions on key topics such as industry trends, initial public offerings and listings, digital applications, index‑based investing, ESG, corporate market capitalization management, and market interconnectivity, while sharing their respective experiences in capital market development. Grounded in the realities of exchange‑sector evolution, the program provided an excellent platform for mutual learning and knowledge sharing, earning unanimous praise from all participants.

The International Exchange and Cooperation Center was established in December 2018, jointly initiated by the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and the Shanghai Stock Exchange Public Welfare Foundation. It aims to support the development of Shanghai as an international financial center and to harness the capital market’s positive role in advancing the Belt and Road Initiative. Its mission is to foster pragmatic cooperation among exchanges by promoting communication, exchange, and information sharing between exchanges and related institutions worldwide. Its scope of activities includes organizing seminars and exchanges, conducting research projects, and providing information and training services related to the development of stock exchanges and capital markets.

The People’s Bank of China has decided to establish the “Securities, Funds, and Insurance Companies Swap Facility.”
On October 10, the People’s Bank of China issued an announcement stating that it has decided to establish the “Securities, Funds and Insurance Companies Swap Facility (SFISF).”
SFISF supports eligible securities offices, fund management companies, and insurance institutions in using bonds, equity ETFs, constituents of the CSI 300 Index, and other assets as collateral to exchange with the People’s Bank of China for high‑quality, highly liquid assets such as government bonds and central bank bills. The initial operation scale is RMB 500 billion, with the possibility of further expansion depending on market conditions. Effective immediately, applications from eligible securities offices, fund management companies, and insurance institutions are being accepted.

The National Administration of Financial Regulation has clarified differentiated regulatory provisions for certain non-bank financial institutions, covering areas such as corporate governance.
The website of the National Administration of Financial Regulation has published the “Notice on the Differentiated Application of Corporate Governance and Other Relevant Regulatory Provisions to Certain Non-Bank Institutions.”
The Notice introduces the following adjustments to the existing regulations governing corporate governance, related-party transactions, and capital management: First, for non‑bank financial institutions organized as limited liability companies that are wholly owned by the same shareholder and its affiliates or concerted actors, the requirement that the board of directors comprise at least five members is waived. Second, for non‑bank financial institutions with a relatively concentrated shareholding structure, the proportion of director nominations submitted by the same shareholder and its affiliates is no longer capped at one-third, and the number of independent directors and external supervisors may be determined on a case‑by‑case basis in light of actual circumstances. Third, while ensuring the effective protection of all major shareholders’ rights to nominate directors and supervisors, there are no restrictions on their re‑nominating independent directors and supervisors. Fourth, unlisted non‑bank financial institutions are permitted not to appoint a board secretary. Fifth, regulatory rules governing related-party transactions are established to align with the business operating characteristics of non‑bank financial institutions. Sixth, certain capital‑management provisions are appropriately adjusted to better reflect the operational features and risk profiles of these institutions.

Commercial & Corporate
Ministry of Foreign Affairs: Countermeasures Adopted Against Three U.S. Defense Contractors and Ten Senior Executives
On October 10, the Ministry of Foreign Affairs announced on its official website the “Decision on Taking Countermeasures Against U.S. Military-Industrial Enterprises and Their Senior Management Personnel.”
The Decision states that the United States’ recent announcement of substantial arms assistance to China’s Taiwan region gravely violates the one-China principle and the three China–U.S. joint communiqués, constitutes serious interference in China’s internal affairs, and severely undermines China’s sovereignty and territorial integrity. In response, China has decided to freeze the domestic movable and immovable property, as well as other types of assets, of three entities—Edge Autonomous Operations Co., Huntington Ingalls Industries, Inc., and Skidmore, Owings & Merrill LLP—and to prohibit organizations and individuals within China from engaging in any transactions, cooperation, or other related activities with them. Furthermore, for ten senior executives of these entities, China will freeze their domestic movable and immovable property and other assets, ban relevant transactions and cooperative activities, and refuse to issue visas or permit entry into China, including Hong Kong and Macao.

The Mainland and Macao have signed the Second Protocol to Amend the CEPA Agreement on Trade in Services.
On October 10, Li Yongxia, Deputy Representative for International Trade Negotiations of the Ministry of Commerce, and Li Weinong, Secretary for Economy and Finance of the Government of the Macao Special Administrative Region, jointly signed in Macao the “Second Protocol to Amend the Agreement on Trade in Services under the Closer Economic Partnership Arrangement between the Mainland and Macao (CEPA).”
“Agreement II” shall enter into force upon signature and shall be formally implemented as of March 1, 2025. This revision takes into account Macao’s economic and social development needs and the industry’s demands, further lowering or eliminating market access barriers for Macao service providers in sectors such as finance, telecommunications, construction, and tourism, thereby facilitating their employment and professional practice on the mainland. Certain liberalization measures will be piloted first within the Guangdong–Hong Kong–Macao Greater Bay Area, further advancing the alignment of institutional frameworks and the harmonization of rules among the three regions.

China and the ten ASEAN member states have announced the substantive conclusion of negotiations on the China-ASEAN Free Trade Area Version 3.0.
On October 10, the leaders of China and the ten ASEAN member states announced the substantive conclusion of negotiations on the China-ASEAN Free Trade Area Version 3.0, issuing the “Joint Statement of China and ASEAN on the Substantive Conclusion of Negotiations to Upgrade the China-ASEAN Free Trade Area to Version 3.0.”
Both sides emphasized that Version 3.0 builds on the existing China–ASEAN Free Trade Agreement and the Regional Comprehensive Economic Partnership (RCEP), delivering significant added value across a range of areas, including the digital economy, the green economy, supply-chain connectivity, standards, technical regulations and conformity assessment procedures, customs procedures and trade facilitation, sanitary and phytosanitary measures, competition and consumer protection, micro, small and medium-sized enterprises, and economic and technical cooperation. The two sides conofficeed they will expedite legal reviews and domestic procedures to pave the way for the signing of an upgraded protocol in 2025.

Two ministries have issued the “Guidelines for the Construction of Pilot-Scale Platforms for New Materials.”
On October 11, the Ministry of Industry and Information Technology published on its official website the “Notice on Issuing the ‘Guidance for the Construction of Pilot-Scale Platforms for New Materials (2024–2027).’”
The Guidelines aim, by 2027, to support the development of pilot‑scale platforms and capacity‑building efforts at the local level, with the goal of fostering the industrialization of scientific and technological achievements in key areas of the new materials sector. The plan seeks to establish approximately 300 regional pilot‑scale platforms for new materials and selectively nurture around 20 high‑level such platforms. In alignment with the strategic imperative to accelerate new‑type industrialization and build a manufacturing powerhouse, the initiative will focus on critical bottleneck materials that underpin national security and economic development, as well as cutting‑edge materials that drive the growth of emerging and future industries. By concentrating on pivotal, cross‑disciplinary technologies that generate significant spillover effects and strongly catalyze industry-wide progress, the Guidelines will identify priority sectors for the construction of new‑materials pilot‑scale platforms.

The Ministry of Industry and Information Technology has issued the “Technical Guidelines for Green and Low-Carbon Development in the Printing and Dyeing Industry (2024 Edition).”
On October 10, the Ministry of Industry and Information Technology published on its official website the “Notice on Issuing the Technical Guidelines for Green and Low-Carbon Development in the Textile Printing and Dyeing Industry (2024 Edition).”
The Guide comprises six sections and 47 green, low‑carbon technologies. Compared with the 2019 edition, it removes six technologies and adds seventeen. Sections 1 through 5 present advanced, applicable green technologies—characterized by high resource and energy efficiency, low pollutant emissions, strong economic benefits, proven reliability, and suitability for widespread deployment—while Section 4 focuses on technologies that synergistically reduce carbon emissions and mitigate pollution. Section 6 covers cutting‑edge technologies that have attracted broad industry attention, are underpinned by a solid research foundation, and align with the sector’s green, low‑carbon development trajectory, yet still face certain challenges in critical areas of R&D or in scaling up their application.

Two departments have reformed and improved the management of the balance between occupied and replenished farmland.
On October 9, the Ministry of Natural Resources published on its official website the “Notice on Reforming and Improving the Management of Farmland Occupation‑Compensation Balance.”
The Notice comprises five sections and seventeen provisions, proposing a management mechanism to ensure that the conversion of cultivated land to construction land adheres to the balance between occupation and replenishment, and that the conversion of cultivated land to other agricultural land complies with the balance between inflow and outflow. It integrates all types of activities that occupy cultivated land—such as non‑agricultural construction, afforestation, and the cultivation of fruits and tea—into a unified system for managing the balance between occupation and replenishment. The Notice further clarifies that each type of activity involving the occupation of cultivated land must designate a responsible entity for replenishing the land. For non‑agricultural construction projects approved to occupy cultivated land, the occupying entity or individual shall fulfill their obligation to replenish the land in accordance with applicable laws and regulations; if they are unable to do so themselves, they must pay the full amount of the cultivated‑land reclamation fee as prescribed.

The Ministry of Transport has issued the “Guidelines for the Application of Spatiotemporal Big Data in Structural Monitoring of Long Highway Bridges.”
On October 10, the Ministry of Transport published on its official website the “Notice on the Issuance of the ‘Guidelines for the Application of Spatiotemporal Big Data in Structural Monitoring of Long-Span Highway Bridges.’”
The Guidelines have been formulated to standardize and guide the analysis and application of structural monitoring data for long-span highway bridges, ensuring that such data effectively supports bridge overload alarms, emergency response, maintenance assessment, and fundamental research, thereby enhancing the level of bridge maintenance management. They apply to long-span highway bridges equipped with structural monitoring systems; other types of bridges may refer to these guidelines for guidance.

The Ministry of Ecology and Environment has issued the Measures for the Supervision and Administration of Sea Discharge Outfalls.
On October 8, the Ministry of Ecology and Environment published on its official website the “Notice on Issuing the Measures for the Supervision and Administration of Sea Discharge Outfalls (Trial).”
The Measures comprise twenty-four articles, clearly defining the concept, types, and principles of classified management for marine discharge outlets. They also set forth corresponding regulatory requirements covering all stages—permitting, filing, monitoring, enforcement inspections, information management, and public disclosure—thereby effectively addressing key issues such as “what constitutes a marine discharge outlet,” “how marine discharge outlets should be classified and managed,” “the procedures for establishing and filing marine discharge outlets,” and “the supervisory and administrative requirements for marine discharge outlets.”

The Ministry of Ecology and Environment plans to issue the national ecological and environmental standard, “Technical Guidelines for Ecological and Environmental Zoning and Control: General Principles.”
On October 10, the Ministry of Ecology and Environment published on its official website the “Notice on Public Solicitation of Comments on the National Ecological and Environmental Standard ‘Technical Guidelines for Ecological and Environmental Zoning and Control — General Provisions (Draft for Comments)’,” with a deadline for submitting feedback set for November 11.
The General Guidelines set forth the overarching principles, procedural framework, key content, and technical requirements for implementing ecological and environmental zoning management, and apply to the organization of such work at the provincial and prefectural levels. Ecological and environmental zoning management in other administrative units, such as counties (districts, cities) and river basins, may be carried out by reference to this standard.

The State Administration for Market Regulation plans to revise the Measures for the Administration of Green Product Certification and Labeling.
On October 9, the State Administration for Market Regulation published on its official website an announcement soliciting public comments on the “Administrative Measures for Green Product Certification and Labeling (Draft for Comments),” with a deadline for feedback set for October 23.
The Measures comprise 7 chapters and 45 articles, setting forth the management procedures for the green product certification and labeling system. They standardize the administrative processes across key stages—namely, the certification framework, certification implementation, certification certificates, green product labeling, and supervisory oversight—while clearly defining the responsibilities of each regulatory authority and the legal liabilities that all participating entities shall bear for violations of these Measures.

The National Medical Products Administration plans to offer rewards for internal whistleblowers who report violations of drug and medical device quality and safety.
On October 10, the National Medical Products Administration (NMPA) published on its official website the “Notice from the General Office of the NMPA Soliciting Public Comments on the Draft Announcement Regarding Rewards for Internal Whistleblowers Reporting Quality and Safety Issues with Pharmaceuticals and Medical Devices.” The deadline for submitting comments is November 9.
The Notice comprises twenty articles, stipulating that, where rewards are granted to internal whistleblowers, the reward standards may be appropriately increased beyond the reward‑amount tiers set forth in the Measures; the maximum reward for each case is capped at RMB 1 million, as prescribed in the Measures. The specific reward amounts shall be determined by the drug regulatory authority disbursing the whistleblower rewards, in consultation with the local government’s finance department.

Beijing has issued the “Implementation Plan for Promoting the Development of Key Areas in Safety and Emergency Response Equipment.”
On October 10, the Beijing Municipal Government published on its official website the “Notice on Issuing the Implementation Plan for Promoting the Development of Key Areas in Safety and Emergency Response Equipment.”
The Implementation Plan identifies key safety‑emergency equipment for application in scenarios such as earthquakes and geological hazards, flood disasters, urban waterlogging, ice and snow hazards, forest and grassland fires, fires in special urban settings, hazardous chemical safety incidents, mining (tunnel) safety accidents, emergency life‑saving operations, and household emergencies. It calls for intensified research on core technologies and their widespread deployment, enhanced provision of advanced, suitable safety‑emergency equipment, and improved capabilities for disaster prevention and control as well as emergency rescue and response.

The Beijing Municipal Bureau of Economy and Information Technology plans to issue an action plan to help small and medium-sized enterprises in advanced manufacturing and the information software sector upgrade to larger-scale operations and maintain stable growth.
On October 8, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Action Plan of the Beijing Municipal Bureau of Economy and Information Technology for Promoting the Scaling-Up, Stability, and Innovation of Small and Medium-Sized Enterprises in Advanced Manufacturing and the Information Software Industry (2025–2027)’,” with the deadline for submitting feedback set for October 12.
The Action Plan specifies that “scale‑up enterprises” refer to advanced manufacturing enterprises that were first included in the statistical reporting system for enterprises above designated size in the previous year or in the current year; “stabilized‑scale enterprises” include advanced manufacturing enterprises whose annual output value first exceeded RMB 100 million (inclusive) and have been incorporated into statistical reporting, as well as information and software enterprises that were first classified as above‑designated‑size in the previous year and whose operating revenue surpassed RMB 100 million (inclusive). Each year, the Municipal Bureau of Economy and Information Technology provides financial incentives to both scale‑up and stabilized‑scale enterprises, with additional awards granted based on their innovation capabilities. The funding for these incentives is allocated from the annual budget for Beijing’s high‑end, sophisticated, and cutting‑edge industrial development.

The draft of the Law on Promoting the Private Economy has been released for public comment.
On October 10, the Ministry of Justice website published the “Notice on Soliciting Public Opinions on the Draft Law of the People’s Republic of China on Promoting the Private Economy,” with the deadline for submitting feedback set for November 8.
The Draft for Soliciting Opinions comprises nine chapters and seventy-seven articles, setting forth provisions on implementing the negative list, the fair competition review system, regularly removing market access barriers, and prohibiting restrictions or exclusions of private-sector entities in tendering and government procurement. It places particular emphasis on supporting private-sector entities’ participation in national major strategies and projects, and on improving the market‑based mechanism for sharing financing risks faced by such entities. The draft also proposes opening up major national scientific research infrastructures to private-sector organizations, standardizing compulsory measures involving restrictions on personal freedom and seizures, detentions, or freezes, and prohibiting the unlawful use of administrative or criminal means to interfere with economic disputes. Furthermore, it strengthens safeguards for timely payment of accounts receivable, reinforces budgetary management, refines payment‑related regulations in a targeted manner, and establishes procedures for consultation, mediation, and resolution of overdue payments.

The Mainland and Hong Kong have signed the Second Protocol to Amend the CEPA Agreement on Trade in Services.
On October 9, Li Yongxia, Deputy Representative for International Trade Negotiations of the Ministry of Commerce, and Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region Government, jointly signed in Hong Kong “Agreement No. 2 on the Amendment to the Agreement on Trade in Services under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA).”
“Agreement II” shall enter into force upon signature and will be formally implemented as of March 1, 2025. This revision aligns with Hong Kong’s economic and social development needs and the industry’s demands, further lowering or eliminating market access barriers for Hong Kong service providers in sectors such as finance, telecommunications, construction, and tourism, thereby facilitating their employment and professional practice on the mainland. Certain liberalization measures will be piloted first in the Guangdong–Hong Kong–Macao Greater Bay Area, further advancing the alignment of institutional frameworks and the harmonization of rules among the three regions.

Nine national cybersecurity standards have been approved for release.
Recently, the State Administration for Market Regulation and the National Standardization Administration jointly issued the Announcement on National Standards of the People’s Republic of China (No. 22 of 2024), officially promulgating nine national standards under the jurisdiction of the Cybersecurity Standards Committee.
This batch of newly released national standards includes: “Network Security Technology—Entity Authentication—Part 2: Mechanisms Using Authentication‑Based Encryption”; “Network Security Technology—Message Authentication Codes—Part 2: Mechanisms Employing Specially Designed Hash Functions”; “Network Security Technology—Hash Functions—Part 1: General Principles”; “Network Security Technology—Hash Functions—Part 2: Hash Functions Based on Block Ciphers”; “Network Security Technology—Hash Functions—Part 3: Specially Designed Hash Functions”; “Network Security Technology—Technical Specification for Network and Endpoint Isolation Products”; “Network Security Technology—Information Security Controls”; “Network Security Technology—Security Specifications for Office Equipment”; and “Network Security Technology—Technical Specification for the Cybersecurity of Smart Door Locks.”

The Ministry of Commerce Held a Press Conference on WTO Disputes Concerning China-EU Trade Remedies Measures
Recently, the European Union stated that it will file a “strong complaint” with the World Trade Organization (WTO) regarding China’s anti-dumping measures on brandy. Meanwhile, China has also initiated WTO proceedings against the EU’s countervailing measures on electric vehicles. The Ministry of Commerce addressed these issues in response to questions from the press.
The Ministry of Commerce stated that China’s imposition of anti-dumping measures on brandy originating in the European Union is a legitimate trade‑remedy measure, lawfully initiated in response to an application by the domestic industry. It is fully consistent with WTO rules. Previously, the EU’s anti-subsidy investigation into Chinese electric vehicles was not launched at the request of the industry; indeed, the relevant EU member states and their industries themselves voiced significant opposition. The EU’s measures suffer from a serious lack of factual and legal basis, blatantly contravene WTO rules, and amount to trade protectionism disguised as trade‑remedy action. To resolutely safeguard the legitimate development interests of China’s electric‑vehicle industry, China has lodged strong representations with the WTO and has referred the relevant anti‑subsidy measures to the WTO dispute‑settlement mechanism. China has consistently opposed the abusive use of trade‑remedy measures and urges the EU to immediately rectify its erroneous practices, so as to jointly uphold the overall China–EU economic and trade relationship.

The Ministry of Commerce held a press conference in response to China’s WTO complaint against Turkey’s import restrictions on electric vehicles and other types of vehicles.
Recently, Turkey imposed a 40% additional tariff on electric vehicles and other automobiles imported from China and introduced import licensing restrictions; in response, China filed a complaint with the World Trade Organization.
The Ministry of Commerce believes that Turkey’s discriminatory measures violate WTO rules and constitute a textbook case of protectionism. It urges Turkey to honor its relevant commitments under the WTO and to immediately rectify its wrongful practices. China will employ all available means to safeguard the legitimate rights and interests of its domestic industries.

Two departments have issued the “Three-Year Action Plan for the Development of a Standard System and Standards for Digital Governance of Natural Resources.”
On October 9, the website of the Ministry of Natural Resources published the “Notice of the Ministry of Natural Resources and the National Standardization Administration Committee on Issuing the ‘Standard System for Digital Governance of Natural Resources and the Three-Year Action Plan for Standard Development (2024–2026)’.”
The Plan specifies that, guided by the practical needs of advancing digital transformation and in accordance with the hierarchical structure requirements of the GB/T 13016 standard system, a digital governance standards framework shall be established, encompassing six major categories—01 Basic General Standards, 02 Digital Infrastructure, 03 Data Resources, 04 Platform Development, 05 Digital Application Scenarios, and 06 Security and Assurance—comprising a total of 28 subcategories.

The Ministry of Industry and Information Technology has publicly announced the recommended national standard “General Specification for the Cascade Utilization of End-of-Life Photovoltaic Modules.”
On October 9, the website of the Ministry of Industry and Information Technology published a public notice on the submission for approval of the recommended national standard “General Specifications for the Cascade Utilization of Retired Photovoltaic Modules,” with the deadline for submitting comments set for October 16.
The Standard specifies the general requirements for the cascade utilization of end-of-life photovoltaic modules, as well as requirements related to collection, cascade use, nameplates, packaging, and management. It applies to the cascade utilization of retired crystalline silicon photovoltaic modules; other types of photovoltaic modules shall be used by analogy.

The National Energy Administration plans to issue the “Basic Rules for the Electricity Ancillary Services Market.”
On October 8, the website of the National Energy Administration published the “Notice on Public Solicitation of Comments on the Basic Rules for the Electricity Ancillary Services Market,” with a deadline for submitting feedback set at 30 days from the date of the notice’s issuance.
The Rules comprise thirteen chapters and eighty-one articles, proposing the establishment of an optimized market mechanism for ancillary services to fully incentivize adjustable resources to actively participate in system regulation, standardizing the development of ancillary service markets at all levels, strengthening coordinated integration between ancillary service markets and electricity spot markets, and achieving synergistic operation across multiple market tiers. The Rules also promote the orderly formation of ancillary service prices and the efficient transmission of costs, while clearly defining provisions related to market participants, principles for market establishment, types of ancillary services, organization of ancillary service transactions, generation and compensation of market charges, transmission mechanisms, metering and settlement, and information disclosure.

Two industry standards related to brain-computer interface medical devices have been officially approved for development.
On October 8, the National Medical Products Administration (NMPA) website published the “Notice on the Approval of Two Medical Device Industry Standards, Including ‘Terminology and Definitions for Medical Devices Utilizing Brain–Computer Interface Technology.’”
The Notice clarifies that the National Medical Products Administration has approved the initiation of two medical device industry standard development and revision projects: “Terminology and Definitions for Medical Devices Utilizing Brain–Computer Interface Technology” and “Test Methods for Sensing and Response Performance of Implantable Neural Stimulators with Closed-Loop Functions in Medical Devices Employing Brain–Computer Interface Technology.”

The Ministry of Industry and Information Technology has publicly announced a revision to one industry standard in the telecommunications sector.
On October 10, the website of the Ministry of Industry and Information Technology published a public notice regarding the submission for approval of an amendment to one industry standard in the telecommunications sector, with a deadline for comments set for October 17.
The Public Notice clarifies that Article 6.3.4(a) of the industry standard “Guideline for Identifying Important Data in the Telecommunications Sector” has been revised to read as follows: “(a) Non‑public statistical data derived from statistical analysis of data generated or collected during business operations, which reflects the overall performance of the national economy, the development trends of the telecommunications industry, the general operational status of core businesses, or the characteristic analysis of specific population groups or users numbering 10 million or more.” In addition, Article 6.3.6(a)(1) has been revised to read: “(1) Personal information pertaining to 10 million or more individuals.”

Five departments have issued a document to strengthen the standardized development of social organizations.
On October 10, the website of the Ministry of Civil Affairs published the “Opinions on Strengthening the Standardization of Social Organizations and Promoting Their High-Quality Development.”
The Opinions comprise six areas and eighteen specific measures, calling for the implementation of prior notification and guidance, rigorous vetting of leadership candidates, guiding social organizations to focus on their core responsibilities and primary functions, strengthening the roles and functions of internal structures, enhancing the management of branch (representative) offices, improving financial management, establishing sound mechanisms for resolving internal disputes, putting in place a comprehensive reporting system for major matters, elevating the quality of annual inspections and annual reports, standardizing fee‑charging practices by social organizations, reinforcing integrated supervision and administration, and innovating supervisory and administrative approaches.

The Ministry of Natural Resources has issued the “Technical Guidelines for Comprehensive Assessment of Natural Resource Asset Prices.”
Recently, the Ministry of Natural Resources published on its official website the “Notice on Issuing the Technical Guidelines for the Comprehensive Assessment of Natural Resource Asset Prices (Trial).”
The Guidelines were developed to guide and standardize price appraisal practices in the combined supply and integrated trading of multi‑category natural resource assets. Centered on the holistic valuation of natural resource asset prices, they define key concepts, set forth principles and requirements, outline principal technical approaches, and highlight important considerations and critical points in the application of relevant methodologies.

Ministry of Natural Resources: Promote the reform of “integrated review and integrated certification” for planning and land use, based on the “single‑plan integration” approach.
Recently, the Ministry of Natural Resources published on its official website the “Notice on Promoting the Reform of ‘Multi-Review Integration and Multi-License Integration’ for Planning and Land Use Based on the ‘One-Plan Integration’ Approach.”
The Notice makes certain revisions to the 2019 edition, primarily by adding the following provision in Section IV of the main text: “Prior to land supply, an immovable property unit code shall be assigned and recorded in the municipal and county land‑use control database, thereby enabling information sharing across all stages of the process—planning, land allocation, registration—and ensuring “one‑code linkage” and joint supervision.” In the annex, the certificate formats for the “Construction Project Planning Permit” and the “Rural Construction Planning Permit” have been added. The “numbering rules” section has been deleted from the annex. The validity period of the document has been extended to September 30, 2029.

The Ministry of Commerce plans to revise the Foreign Trade Law, adding provisions on codes of conduct and risk‑prevention measures.
Recently, the website of the Ministry of Commerce published the “Notice on Soliciting Public Opinions on the Draft Amendment to the Foreign Trade Law of the People’s Republic of China,” with the deadline for submitting feedback set for October 12.
The Draft for Public Comment comprises eleven chapters and eighty-three articles, stipulating the due diligence obligations of foreign trade operators that undertake comprehensive foreign trade services on behalf of others. It primarily introduces additional codes of conduct governing foreign trade activities, provides that the State shall implement a negative-list management system for cross-border trade in services, and uniformly sets out special regulatory measures applicable to overseas service providers offering services through cross-border delivery, consumption abroad, or the movement of natural persons. The draft also clarifies the procedures for formulating, publishing, and revising the negative list for cross-border trade in services. Furthermore, in accordance with relevant international economic and trade rules, the draft strengthens risk‑prevention and control measures, including the provision that, for specific reasons, the State may adopt other necessary measures in addition to prohibiting or restricting imports and exports.

The National Healthcare Security Administration has strengthened the management of social supervisors for the medical insurance fund.
On October 9, the National Healthcare Security Administration’s website published the “Guiding Opinions on Strengthening the Management of Social Supervisors of the Medical Security Fund.”
The “Guiding Opinions” stipulate that social supervisors shall be selected primarily from among deputies to the People’s Congress, members of the Chinese People’s Political Consultative Conference, media representatives, representatives of designated medical institutions, experts and scholars in relevant fields, insured persons, and other individuals who are enthusiastic about the cause of medical security. Social supervisors are required to study and familiarize themselves with the laws, regulations, policy documents, and knowledge related to the supervision of medical insurance funds. They shall oversee the use of medical insurance funds by designated medical institutions and insured persons, identify and promptly report any leads regarding illegal or non‑compliant practices in the management and utilization of such funds. In addition, they shall monitor the performance of duties by medical security authorities and their staff in accordance with laws and regulations, and put forward recommendations for improving medical insurance policies, optimizing management, and strengthening fund oversight. In line with the arrangements and deployments of the medical security authorities, they shall actively participate in publicity campaigns, training sessions, seminars, and inspection and supervision activities. They should also pay close attention to public opinion and sentiment, convey the views and suggestions of all sectors of society on the supervision of medical insurance funds, proactively engage in online and media interactions, and promote positive energy.

Taxation
The General Administration of Customs plans to implement write-off management for bonded logistics account books.
On October 10, the General Administration of Customs issued a public consultation on the “Announcement of the General Administration of Customs on Implementing Verification and Cancellation Management for Bonded Logistics Ledgers (Draft for Comments),” with the deadline for submitting feedback set for October 24, 2024.
The Notice, first, clarifies the scope of logistics ledgers subject to write‑off management, encompassing logistics ledgers for customs special supervision zones and bonded supervision sites within the Customs’ Phase II Processing Trade and Bonded Supervision subsystems, including those for cross‑border e‑commerce. Second, it sets out specific provisions for the write‑off management of logistics ledgers, clearly defining requirements regarding the write‑off cycle, the deadline for submitting write‑off reports, the content of such reports, and the handling of write‑off outcomes. Third, it specifies the detailed requirements for transitioning from old to new logistics ledgers, establishing a six‑month transition period and articulating the relevant obligations during that phase.

The Ministry of Finance is seeking public input on the equity method of accounting under International Accounting Standards.
The Accounting Department of the Ministry of Finance has issued the “Letter on Soliciting Public Comments on the Exposure Draft on Equity Method Accounting Issued by the International Accounting Standards Board” (Caihui Bianhan [2024] No. 47) and is now seeking public input.
On September 19, 2024, the International Accounting Standards Board (IASB) issued the Exposure Draft on Equity Method Accounting, proposing amendments to International Accounting Standard No. 28—Investments in Associates and Joint Ventures, along with other relevant International Financial Reporting Standards, and inviting public comment from stakeholders worldwide.
To deepen its participation in the development of International Financial Reporting Standards and ensure that revisions and improvements to these standards better address the needs of Chinese stakeholders, the Accounting Department of the Ministry of Finance has organized relevant entities to submit comments on the exposure draft and to forward their written feedback to the Accounting Standards Board by November 8, 2024.

NDRC: Will examine whether to extend certain tax incentive policies.
On October 8, Zheng Zhajie, Director of the National Development and Reform Commission, stated at a press conference held by the State Council Information Office that the follow-up arrangements for phased tax and fee preferential policies would be clarified in advance.
According to a review, by the end of this year, certain tax and fee‑related policies—such as unemployment insurance support, measures to help enterprises stabilize employment, and skills‑upgrade subsidies—are set to expire. Based on relevant research and assessments, the competent authorities will expedite efforts to determine whether these policies will be extended. If an extension is decided upon, the specific implementation period will be finalized without delay.

LITIGATION & ARBITRATION
State Council: Litigation fees for small-claims cases in Xiamen shall be paid at one-quarter of the standard rate.
On October 10, the Chinese Government Website published the State Council’s Reply Approving the Temporary Adjustment of Relevant Administrative Regulations in Xiamen.
The Approval Document stipulates that, effective immediately and for a period of two years, the relevant provisions of the Measures for the Payment of Litigation Costs and the Regulations on the Administration of Radio and Television shall be temporarily adjusted and implemented in Xiamen. For small-claims cases heard in Xiamen, the litigation fee standard shall be further reduced by half on top of the simplified procedure, with fees set at one-quarter of the standard applicable to civil cases. At the same time, the radio and television administrative department of the Xiamen Municipal People’s Government is authorized to review and issue licenses for the production and operation of radio and television programs.

The Supreme People’s Procuratorate and the Ministry of Veterans Affairs have jointly released typical cases of public interest litigation in the field of protecting heroes and martyrs.
The Supreme People’s Procuratorate and the Ministry of Veterans Affairs jointly released nine typical cases of public-interest litigation in the field of protecting heroes and martyrs, including six administrative public-interest litigation cases and three civil public-interest litigation cases.
Among the cases released this time, all three civil public-interest litigation cases involve infringements upon the reputation and honor of heroes and martyrs in cyberspace. In light of the rapid and widespread dissemination of such infringements online, and considering that merely seeking an apology would have a limited reach and fail to meet the requirement set forth in Article 1,000, Paragraph 1 of the Civil Code of the People’s Republic of China—that “the remedy shall be commensurate with the specific manner of the act and the scope of its impact”—the procuratorial organs have proactively explored requesting the tortfeasor to undertake positive publicity through the original channels of dissemination and amplification, thereby restoring the damaged public interest.

The Guangzhou Intellectual Property Court has released typical cases on judicial protection of intellectual property rights related to data rights.
The Guangzhou Intellectual Property Court has released a set of landmark intellectual property cases involving data rights, primarily addressing issues such as unfair competition and copyright.
A total of six cases were released this time, addressing core issues in data‑rights protection—such as the rules governing the attribution of different types of data rights—as well as various forms of data infringement, including improper data acquisition, improper data use, obstruction of data processing, and data contamination. In the unfair competition dispute between Tian Company and Rui Company, the court held that the software at issue “one‑click” scraped product data published on Tmall and Taobao platforms, listed such products in stores operated by merchants without their own inventory on other e‑commerce platforms, and gave them special promotion—actions that usurped the competitive advantages legally enjoyed by the legitimate operators of the product data, thereby constituting unfair competition. This case is the first nationwide to hold that big‑data migration software constitutes unfair competition.

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